Maggie Beer Holdings Ltd (ASX: MBH) is a company you might not have heard of. But I'm sure the eponymous name gives it away regardless. Maggie Beer is a famous Australian chef, perhaps best known for her appearances on television shows like Masterchef, or from the self-branded range of foods and kitchen products.
But it's not just this chef that's been cooking up a storm lately. Maggie Beer Holdings is the company behind Maggie Beer (the chef). It grew it out of a small shop that accompanied one of Ms Beer's restaurants back in the 1970s. But today, it is the company behind the product range described above, as well as a growing stable of supplementary brands, such as Paris Creek Farms and Saint David Dairy.
That's despite it only changing its name to Maggie Beer Holdings in July this year (it was formerly known as 'Longtable Group'). It has done very well in 2020 too, rising more than 158% in value since the start of the year. Maggie Beer Holdings is currently (at the time of writing) trading at 45 cents a share.
Investors tap the keg at Maggie Beer
And clearly, investors have noticed. According to reporting in the Australian Financial Review (AFR) this week, Maggie Beer Holdings is attracting a lot of attention as an investment, even though Ms Beer no longer owns a substantial stake in the company (despite still being a director). The AFR reports that Ms Beer and her husband sold their remaining 52% stake in the company last year. But that hasn't stopped other investors taking up the slack.
The AFR reports that fund manager Ellerston Capital has become a major shareholder in the company. Ellerston has reportedly built a rough 7.2% stake in Maggie Beer Holdings after picking up 5 million shares earlier this week.
But Ellerston is not the only large-scale investor either. The AFR also reports that Geoff Wilson, of Wilson Asset Management (WAM), has also 'got on the Beer' in 2020. Wilson (in a private capacity, rather than through a WAM company) has reportedly racked up a 7.6% stake in the company of his own, through his private company Dynasty Peak Pty Ltd. That stake is worth more than $6 million on today's prices.
It appears Mr Wison's timing was impeccable. The AFR reports that Maggie Beer Holdings reported sales growth for the first quarter of FY2021 of 19% at its annual general meeting last week. It also reported that the Maggie Beer brand enjoyed sales growth of 24% over the same period.
The Paris Creek Farms range is apparently in the black now as well, after previously being a money loser. The company also recently made headlines for inking a deal with Coles Group Ltd (ASX: COL). Coles is now stocking a range of plant-based meals from Maggie Beer, which the markets welcomed at the time.
